Towards the end of last week, an ex-EU scrap deal to Turkey was closed at a slightly lower price level, though this has not been considered as a decline by many insiders.
SteelOrbis has learned that the ex-Netherlands booking was done by an Iskenderun-based mill, with HMS I/II 80:20 scrap standing at $380/mt CFR. The cargo will be shipped in late January or early February. Before this deal, SteelOrbis’ reference prices for ex-EU HMS I/II 80:20 scrap was in the range of $380-384/mt CFR, placing the new level a mere $2/mt lower than the previous average.
A market insider told SteelOrbis, “There is not enough time for Turkish mills to push down prices due to logistical issues. Turkey needs more deep sea cargoes if Turkish mills are not planning to shut down, which is not the case.” As SteelOrbis reported at the end of last week, scrap suppliers are not stressed and are in a holiday mood, an so they are in no rush to conclude more sales by reducing their offers to Turkey. A Turkish producer mentioned that the share of energy costs of its total costs has reached 30 percent from 10 percent recorded in previous years, adding, “We can cut production rates further, or we can work shorter hours. But we also see that the inflation in scrap supplying regions is causing collection activities to slow down, causing the collection quotations of export yards from remaining firm.” On the other hand, the local Turkish rebar market is softening. One major Izmir-based mill announced lower quotations today, December 19, and this may negatively impact the sentiment in the rebar spot market. It should be noted that Turkish mills depend hugely on their local sales as they have for a while now lost competitiveness in the international market due to higher energy costs.
The number of offers in the short sea segment has declined over the past week. “Sellers are in a holiday mood,” a short sea supplier commented. SteelOrbis’ short sea scrap prices have been revised to $365-370/mt CFR, as recorded in the most recent ex-Romania scrap deals.
